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Exercise 3. Consider a pure exchange economy with / = 2 consumers and L = 2 goods, with: UI(in,In) = mer, w = (1,0) -0.50.5
Exercise 3. Consider a pure exchange economy with / = 2 consumers and L = 2 goods, with: UI(in,In) = mer, w = (1,0) -0.50.5 wq = (0, 1) U2($12, 122) = 12 22 Compute the Pareto optimal allocation that yields to consumer 2 a level of utility at least equal to us = 0.5
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